Part II of a III  part blog series

As we’ve mentioned in an earlier blog, where you decide to put down roots is one of the most momentous decisions you can take as a business. So it pays to give it sufficient consideration and to find a flexible business unit to rent.

The first blog covered the physical and tangible factors which influence where you choose to situate your business.

In the second of our three part blog on choosing a flexible business space, we’ll now take a look at the ongoing considerations: specifically those that impact on your running costs.

The ongoing considerations of where you move your business to

The running costs for small business rentals

These encompass the business rates and other running costs like your utilities (electricity, gas, water etc), but don’t forget other aspects particular to a location (like congestion charges and car parking charges). Some landlords directly charge business rates together with the unit rental, with others, the business rates are separate.

There are many more potential running costs dependent upon the unit you may be interested in, but those are the main ones to ponder. Look carefully at ones which have variable costs, such as for phone calls or photocopying – make sure the fees are fair and transparent.

Last but by no means least (in terms of the factors affecting your decision) are the legal considerations. Ignore or skim over at your peril! What is the length of contract term? Are there any break clauses? You need to be sure that you are not tied in for years without any option to cancel or move.

Hidden clauses and restrictions on use of a building

Any business owner needs to ensure that the business you are renting is suitable for your business, not just today but also for tomorrow. For instance one possible disadvantage might be whether there are any restrictions for access, particularly for members of the public.

Or, for example, if you are running a workshop, are there parts of your work which are not fully covered by the terms of the contract or insurance. You need to be sure that if an accident happens, it is fully covered.

Are additional licences required based on the nature of your work? For instance whether materials you have on site are considered hazardous. Are you able to subcontract, or do you have cover for freelance or contract workers.

Naturally, fire and health & safety flow from this, as well as whether the premises are suitable for all staff, for instance if any disabilities need to be catered for.

Can you rent this office on favourable terms?

The site needs to suit you and your customers,not just today, but far into the future, so beware of tying yourself too firmly to a contract which lasts longer than it needs to.

Most business leases are for 2-3 years with various break clauses, usually at an annual basis. These days, increasing numbers of property companies (Flexspace included) favour auto renew – essentially a rolling contract which relies on the tenant canceling. This provides both flexibility and longevity for both parties.

But look out for contracts which run for years, they can seem really attractive, but what if your business shuts or grows. What seemed like a good deal last year may seem like shackles to you today.

Those,  in a nutshell, are some of the key on-going considerations when looking and assessing your new or first business premises.

Of course, you could always save a lot of legwork by coming to the experts – Flexspace, and let us do all the hard work. We have a range of business premises across the country close to major arterial connections, together with some very favourable terms (up to 3 months free for some localities).

Many of our sites have additional amenities like on-site cafes etc. So next time you are reviewing your next location, consider contacting Flexspace. We’ll try to make you an offer you can’t refuse!

Flexspace: Managed workspace for the modern business.
Call 0800 033 4444 or complete the form today!